CHEAP SELLERS CO, INC.

STATEMENTS OF FINANCIAL POSITION

DECEMBER 31
Notes 2020 2019
A S S E T S

CURRENT ASSETS
Cash and cash equivalents 5 P 3,932,045 P XXX
Trade and other receivables 6 53,830,227 XXX
Inventory 13 97,188,875 XXX
Prepayments 7 405,698 XXX
Total Current Assets 155,356,845 XXX

NON-CURRENT ASSETS
Property and equipment 8 8,827,386 XXX

TOTAL ASSETS P 164,184,231 P XXX

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Bank loans 9 P 100,000,000 P XXX
Trade and other payables 10 697,923 XXX
Income tax payable 15 178,358 XXX
100,876,281 XXX

EQUITY
Capital stock 11 40,000,000 XXX
Retained earnings 23,307,949 XXX
TOTAL EQUITY 63,307,949 XXX

TOTAL LIABLITIES AND EQUITY P 164,184,230 P XXX

See accompanying notes to financial statements.

CHEAP SELLERS CO, INC.
STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31

Notes 2020 2019

NET SALES 12 P 291,053,183 P XXX

COST OF SALES 13 (262,141,841) XXX

GROSS PROFIT 28,911,342 XXX

OPERATING EXPENSES 14 (22,234,565) XXX

INCOME FROM OPERATIONS 6,676,777 XXX

FINANCE COST 9 (129,862) XXX

PROFIT BEFORE TAX 6,546,915 XXX

INCOME TAX EXPENSE 15 (2,045,112) XXX

PROFIT FOR THE YEAR 4,501,803 XXX

OTHER COMPREHENSIVE INCOME - -

TOTAL COMPREHENSIVE INCOME P 4,501,803 P XXX

See accompanying notes to financial statements.

CHEAP SELLERS CO, INC.
STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2020 AND 2019

Retained earnings
Share capital Appropriated Unappropriated
(Note 11) (Note 11) (Note 11) Total

2019

Balance at start of year P XXX P XXX P XXX P XXX

Total comprehensive income XXX XXX XXX XXX

Balance at end of year P XXX P XXX P XXX P XXX

2020

Balance at start of year P 40,000,000 P - P 18,806,146 P 58,806,146

Total comprehensive income - - 4,501,803 4,501,803

Balance at end of year P 40,000,000 P - P 23,307,949 P 63,307,949

See accompanying notes to financial statements.

 financial statements output

provides quantitative information

whom internal usersManagement - Higher accounting

external user Primary L + OE Creditors/Investors
Others Regulatory bodies

A = L + OE

general purpose financial statements standards

Income statement

Sales Sales
Cost of sales (Variable cost)
Gross profit Gross margin
Operating expenses (Fixed Cost)
Profit Profit

INTERNATIONAL FINANCIAL REPORTING STANDARDS

PHILIPPINE FINANCIAL REPORTING STANDARDS

3K + FULL PFRS ASSET IS MORE THAN 300 M OR LIABILITIES IS MORE THAN 250 M

300 PAGES PFRS FOR SMALL-MEDIUM ENTITIES (PFRS FOR SMES)

50 OR LESS PFRS FOR SMALL ENTITIES

COMPANIES WITH LESS THAN 3 MILLION ASSETS

what
when
where
how

FACE OF THE FS DOES NOT SHOW ACCOUNTS BUT RATHER LINE ITEMS

CASH
RECEIVABLES
INVENTORIES

WHAT DEFINITION
WHEN RECOGNITION

MEASUREMENT
INITIAL
SUBSEQUENT

DERECOGNITION

PRESENTATION AND DISCLOSURES

 provide information (quantitive, primarily financial in nature)
Output Financial statements

internal management

external primary L+OE. Creditors/Lenders + Investors

others Employees, Government, Customers

Assets = Liabilities + Owners' equity

Income Statement

Net Sales Net Sales

(Cost of Sales) (Variable costs)
Gross profit Gross margin
(operating expenses) (Fixed cost)
Profit Profit

follow standards

INTERNATIONAL FINANCIAL REPORTING STANDARDS

PHILIPPINE FINANCIAL REPORTING STANDARDS (PFRSs)

4k pages FULL PFRS

TOTAL ASSETS MORE THAN 300 MILLION
OR TOTAL LIABILITIES MORE THAN 250 MILLION

300 pages PFRS FOR SMALL AND MEDIUM ENTITIES (PFRS for SMEs)
ASSETS MORE THAN 3 M BUT LESS THAN 300 MILLION

less than 50 PFRS FOR SMALL ENTITIES

TOTAL ASSETS LESS THAN 3 MILLION

LINE ITEMS

WHO CASH
WHAT RECEIVABLES
WHEN INVENTORIES
WHERE
WHAT DEFINITION

WHEN RECOGNITION

HOW MUCH MEASUREMENT

INITIAL
SUBSEQUENT

DERECOGNITION

PRESENTATION & DISCLOSURES